Nasdaq 100 Enters Correction Amid Global Market Turmoil

The Nasdaq 100 has officially entered correction territory, declining more than 10% from its October highs as escalating geopolitical tensions with Iran and surging oil prices rattle global markets . The tech-heavy index fell 2% on Friday alone, capping its fifth straight weekly decline, the longest such streak since 2022.

Oil prices have been the primary catalyst for the selloff, with US crude briefly touching $100 per barrel and Brent crude surging to $112.57, driven by fears of disruption in the Strait of Hormuz . The energy shock has created clear winners and losers: SM Energy and PBF Energy have surged 44% and 40% respectively over the past month, while technology and consumer discretionary stocks have borne the brunt of the selling .

Consumer sentiment has deteriorated sharply as gasoline prices rise, feeding fears of sustained inflation and a potential delay in Federal Reserve rate cuts. Analysts warn that if oil prices remain elevated, the risk of recession increases materially. Investors are repositioning portfolios toward energy and defensive sectors while reducing exposure to high-multiple growth names that are most vulnerable to rising discount rates .